Question

suppose a developer is interested in building a new residential subdivision. through his market research, the developer has determined that the target market segment potential in year 1 consists of 160 households. if the developer projects that he will be able to sell 24 homes in the first year, what is his assumed capture rate?

Answer 1

In percentage terms, the developer's assumed capture rate is 2.5%.

What is the capture rate?

The capture rate represents the percentage, proportion, or ratio of households to which the developer can sell homes in a year.

To determine the capture rate, divide the number of estimated successful sales by the estimated target market for the period and multiply the result by 100.

The capture rate helps estimate the ratio of successes recorded over the total number of outcomes available.

The estimated target market in a year = 160 households

The number of homes sold in the year = 24

Capture rate = 2.5% (24/160 x 100)

Thus, the developer assumes that they can sell to 2.5% of the households in the first year.

Learn more about the capture rate at https://brainly.com/question/27881873

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